Salary Range Revision
STATE PERSONNEL MANUALSalary Administration
Section 4, Page 1
September 1, 1991
Salary Range Revision
Definition / Salary Range Revision is any change in a salary range approved by the State Personnel Commission and resulting from changes in the labor market.Also, see Special Entry Rates and Geographic Differentials at the end of this Policy.
Purpose / The primary purpose of range revisions, special entry rate authorizations or geographic differentials is to provide current and competitive salary rates for use in recruitment of employees. Revisions resulting from upward changes in the labor market serve another purpose in helping reduce the vulnerability of employees to external job offers when their salaries are below the market average as reflected by the midpoint of the salary range.
Determining Amount of Increases / Salary increases as a result of salary range revisions, special entry rates, or geographic differentials are not rewards for job performance or assumption of greater responsibility. Increases provided by this policy are for maintenance of market competitive pay levels for affected employees. For employees below the midpoint, management is encouraged to increase salaries.
Factors that should influence the amount of increase include:
current salary relationship to the minimum and midpoint rates,
salary equity among affected employees, and
satisfactory job performance.
Subject to the availability of funds and satisfactory performance, salary increases, not to exceed the maximum of the range, may be given in accordance with the provisions outlined below.
Equity / Agency management is responsible for assuring that inequities are not created.
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Minimum Salary Increase for SR Revision / When a classification is assigned to a higher grade, if funds are available and if there are no performance or personal conduct issues involved, the increaseshall be given as follows:
If an employee’s current salary is: / it shall be: / effective on the:
at the hiring rate of the old range, / increased to the new hiring rate / date of the salary range revision.
at the minimum of the old range, / increased to the minimum of the new range / date of the salary range revision.
Delayed Increase to HR or Minimum / If funds are not available to implement a salary range revision, the increase to the hiring rate or minimum shall be given from the first available funds and may be made retroactive to the effective date of the salary range revision. If the increase is denied because of performance or personal conduct, the increase may be given on a current basis if/when the issue is resolved.
Optional Salary Increases for SR Revision / Salary increases within the range are optional but may be considered unless a reduction in grade has occurred as explained under “Salary Range Revision Within 24 Months of a Reduction.” If the full increase is not given, additional increases may be given, but are limited to 3 occurrences over a 24-month period. If recommended:
The total increase / effective
cannot exceed the dollar amount provided by the difference in the minimum salaries of the old range and the new range, / either on the date of the revision, or, if funds are not available at that time, on a current basis, limited to 3 occurrences within 24 months.
If increases are to be given at later dates, a notation must be entered on the form stating the reason the increase is being delayed and showing the dollar amount of the allowable increase, the amount given, and the balance that may be given later. The personnel actions submitted later must state “Range Rev Inc - After Effective Date” in the description of action block, which will denote that this is a delayed salary increase.
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Salary Range Revision, Continued
Salary Increase Authorization Canceled / If a subsequent promotion, reallocation up or down, demotion or reassignment occurs, this cancels the authorization to grant additional increases as a result of the previous salary range revision.Salary Range Revision Within 24 Months of a Reduction / If an employee has been reduced to a lower salary grade through demotion, reassignment, reallocation, or salary range revision, but without a corresponding reduction in salary, and the employee’s position is later assigned to a higher grade as a result of salary range revision, the number of grades in the original reduction shall be considered to have been compensated and shall not be considered in the above salary setting procedure.
If the reduction in grade occurred as much as twenty-four months previously, the agency may give consideration to granting a salary increase within the provisions of this policy. The need to maintain equity of salaries within the work unit must be a major consideration.
Performance Increases / If the employee is to receive a performance salary increase (interpreted to mean cost-of-living adjustment, career growth recognition award or performance bonus) on the same day as the salary range revision, the increase shall be given before a range revision increase is considered.
Salary Range Revision with No Change in Special Entry Rate / When an agency has implemented the special entry rate (SER) for a classification that is receiving a range revision and there is no change in the SER, a range revision adjustment is not given. The SER covers the range revision amount.
Salary Range Revision to a Lower Grade / When a classification is assigned to a lower grade, the employee’s grade may be allowed to remain at the current level so long as the employee continues to occupy the same position or is in the same classification; however, the grade of the position must be reduced and the employee will function in a “work against” mode.
Once the position is vacated, it must be filled at the lower grade level.
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Salary Range Revision, Continued
Special Entry Rates / When critical recruitment or employee retention problems are officially recognized by the State Personnel Director, but salary range revisions are not necessary, feasible or practical (i.e., when range minimums are not competitive, but maximums are adequate), the Director may authorize a special entry rate.Special entry rates (SER) are established as a dollar amount above the hiring rate. When implemented, this becomes the new hiring rate for that class.
A special minimum rate (SMR) is also established at 5% above the SER. This becomes the new minimum for that class.
A maximum in-grade adjustment is established (MIA) for the purpose of granting increases to employees whose salaries are within the range. Initially, this is the difference between the hiring rate and the SER. (If a new SER is established, the MIA increases by the difference in the old SER and the new SER.)
Agencies experiencing recruitment and retention difficulties may elect to use the SER only or they may elect to use the SER and the SMR.
Priority for salary increase shall be given to employees whose salaries are below special entry rates. Salary increases shall not be given to employees whose performance or personal conduct is not at a satisfactory level. Salary increases are not entitlements and all are subject to the availability of funds.
Advisory Note: Retention Increases - There are times when a retention adjustment is needed prior to the implementation of an SER and is approved with the understanding that it will be subtracted from the MIA when implemented. If there is justification to do otherwise, it must be handled as an exception.
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When an agency implements an SER, salary increases, not to exceed the maximum of the range, may be given in accordance with the following:If an employee’s current salary is: / it may be: / effective on:
at the hiring rate, / increased to the special entry rate (SER) / the date SER implemented. *
at the minimum, / increased to the special minimum rate (SMR) / the date SER implemented. *
above the minimum, / increased up to the dollar amount authorized by the maximum in-grade adjustment (MIA) / a current basis, limited to 3 occurrences within 24 months of effective date.
*If funds are not available on the date the agency implements the SER, but become available later, the increase to the SER or SMR may be retroactive.
Additional SER’s / If a higher special entry rate is authorized for a class that already has a special entry rate, the employee may receive an increase up to the dollar amount authorized between the old MIA and the new MIA. The employee may also receive a prior documented MIA balance that has not been given due to lack of funds, etc.
Classes Not Included in SER Authorization / When a special entry rate authorization does not include all classes within a class series, consideration for increases for employees in the class(es) without a special entry rate will be on an individual basis, with written justification.
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Salary Range Revision, Continued
Effects of SER on Subsequent Personnel Actions / Promotion or Reallocation from class without an SER to class with an SER: When promoted or reallocated from a class that does not have an SER to a class in which an SER has been implemented, the agency may grant the SER in accordance with the promotion or reallocation policies.Lateral Transfer: If an employee transfers between agencies and the releasing agency does not utilize an authorized SER but the receiving agency does, the SER cannot be used as justification for a salary increase if both work stations are within the same geographic area (e.g., Greenville to the Triangle area).
Reallocation Down, Demotion or Reassignment: When an employee is reallocated down, demoted or reassigned from a class with an SER to a class without an SER, the authorization to grant MIA balances is canceled.
Geographic Differential: If a geographic differential is assigned to a class that has an SER and the SER does not change, no additional increase is allowed.
Geographic Differential / When critical recruitment or employee retention problems in a specific location are officially recognized by the State Personnel Director, but a salary range revision is not necessary, feasible or practical statewide (i.e., when both minimums and maximums are not competitive in a specific location but are competitive in most locations), the State Personnel Director may authorize a higher salary range for a specific location.
A geographic differential is established as a salary grade above the established salary grade. Agencies experiencing recruitment and retention difficulties may elect to use the geographic differential. When a geographic differential is in effect, salary increases may be granted in accordance with the salary range revision policies and all salary administration policies are applied as if the classification were at the higher grade.
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Salary Range Revision, Continued
Effects of Geographic Differential on Subsequent Personnel Actions / Promotion or Reallocation from class with Geographic Differential to class without Geographic Differential: When promoted or reallocated from a geographic differential class to a non-geographic differential class, the employee’s pay rate must first be reduced. The reduction is the amount of the dollar difference between the current minimum of the geographic differential salary grade and the current minimum of the same class without the geographic differential. Then, increase is determined from the lower salary grade in accordance with the promotion or reallocation policy.Promotion or Reallocation from class without Geographic Differential to class with Geographic Differential: When promoted or reallocated from a non-geographic differential class to a geographic differential class, the increase is granted in accordance with the promotion or reallocation policy.
Lateral Transfer, Reallocation Down, Reassignment or Demotion: When an employee is receiving a higher rate of pay by virtue of working in a geographic differential class and transfers (laterally, reassigned or demoted or reallocated down) to a non-geographic differential class, the employee’s pay rate is reduced. The reduction is the amount of the dollar difference between the current minimum of the geographic differential salary grade and the current minimum of the same class without the geographic differential.
Special Entry Rate: If a higher geographic differential is assigned to a class that has an SER and the SER does not change, no additional increase is allowed.
Salary Range Revision